DeKay shares thoughts on the State of the State Address
On Wednesday, Jan. 15, Governor Jim Pillen presented his State of the State Address before the members of the Legislature. In his address, he noted that Nebraska remains on a strong footing since the state’s unemployment rate remains low and the population is growing surpassing two million residents. As such, much of his address was focused on presenting his legislative priorities for the year. Bills being brought at the request of the Governor this year include: LB3 by Senator Lippincott to return Nebraska to being a winner-take-all system when it comes to allocating the state’s electoral college votes for President and Vice-President; LB89 by Senator Kauth which would adopt the Stand with Women Act to restrict biological boys from sharing bathrooms, locker rooms, and playing sports with biological girls; LB246, my bill, which would ban the sale of lab-grown meat in Nebraska; and LB303 by Senator Hughes to increase per student foundation aid to schools and create a commission to examine school finance.
Governor Pillen also presented the Legislature with his budget proposal for the next two fiscal years between July 1, 2025, and June 30, 2027. Late last year, the Nebraska Economic ForecastingAdvisory Board projected that the state would have a $432 million budget shortfall due to drawdown of the federal pandemic funds and lower than expected tax collections resulting from tax cuts passed in prior legislative sessions.
The Governor’s proposed budget therefore calls for cuts to multiple state agencies, programs, and projects, repealing recently passed state laws that included new spending or cost the state significant revenue, and leveraging more federal dollars as mandated Medicaid and health costs rise. The Governor’s proposed budget also recommends halting funding allocated to several tax exemptions currently in statute.
In terms of impact relevant to northeast Nebraska and District 40, the Governor’s proposed budget includes the following: Cutting $65 million from the projects proposed at Lewis and Clark Lake and Niobrara State Park in Knox County (and Lake McConaughy in Keith County) as part of the Statewide Tourism and Recreational Water Access and Resource Sustainability (STAR WARS) initiative; Striking a previously allocated appropriation to the Ponca Tribe of Nebraska to help construct a Standing Bear Museum and Visitor Center near Niobrara; Increasing state public education funding by $67.6 million to ensure the state can continue to reimburse local school districts for 80% of special education costs; and Allocating $5.5 million to the Nebraska Corn Board for local, regional and international marketing.
I generally agree with the Governor that the Legislature must have the courage to say no and to focus on wants over needs. This is a good time for the Legislature to consider pausing, reevaluating, or reconsidering various projects and programs, such as a tax incentive program for sports complexes in Lincoln and Omaha. Although the state has a budget shortfall, I do think the Legislature can work with the Governor to ensure the state’s needs are met and that we can continue progress toward more property tax relief via more fully funding public education.
That being said, I am a bit disappointed with the cuts to STAR WARS in Knox and Keith counties. The projects involved represent significant rural economic development that would be vital to helping to retain and attract people and dollars to our areas of state. Tourism is a major industry for Nebraska and our two largest lakes draw a lot of people who spend money and invest here. I know that there is already investment happening by the private sector in the area of Lewis and Clark Lake, with many businesses counting on these projects moving forward. I will be working closely with my colleagues to try to ensure the promises made to Northeast Nebraska and Western Nebraska prior to my time in the Legislature are fulfilled.
Contacting my office and hearing insights from you is always appreciated. Call my Capitol office telephone number at (402) 471-2801 or send email to [email protected]. My mailing address is: Senator Barry DeKay, District #40, P.O. Box 94604, State Capitol, Lincoln, NE 68509.
